What insurance do you need to let your home to short-stay guests?

Letting your home by the night changes both your licence duties and your home policy.

What insurance does Dubai require for a holiday home?

A policy that protects your guests. Under Article 8 of Dubai Decree No. 41 of 2013 on holiday homes, a licensee must “provide an insurance policy issued by a licensed insurance company in accordance with the conditions adopted by the DTCM in this regard, with a view to ensuring that Guests are indemnified for any damage they may sustain. The insurance policy must be valid for the entire term of the Licence”.¹

The licence lasts one year and can be renewed. The Department may approve a term of up to four years on request (Article 7).¹

The fine for “Failure to maintain a valid insurance policy throughout the term of Licence” is AED 2,000. Running the activity without a licence is AED 5,000.²

The decree names the Department of Tourism and Commerce Marketing (DTCM), and the Dubai Department of Economy and Tourism (DET) publishes it. The decree does not set a minimum limit for the policy.¹ Ask DET which conditions it applies when you apply for or renew the licence.

What about Abu Dhabi?

The Abu Dhabi Real Estate Centre has told community management companies and owners committees to set rules for short-term and holiday home lets in their communities, aligned with the Department of Culture and Tourism’s holiday homes guidelines.³ Check your community’s rules and DCT’s guidelines before you list a property.

Does your normal home policy still cover you?

Less of it. Standard wordings cut cover when a home is let or used by paying guests.

Liva excludes “Property used or held for business professional purposes” from contents.⁴ GIG Gulf’s change of address condition refers to a home that is “self-contained and not used for any business purpose”.⁵

Tell your insurer in writing that the home is let to short-stay guests, and ask for a policy or endorsement that covers it, including liability to guests.